Cathy Company has two divisions, L and M. During July, Division L had sales of $80,000, a contribution margin ratio of 30%, and a segment margin of $10,000. The company as-a-whole had sales of $200,000, a contribution margin ratio of 40%, and a segment margin for the two divisions totaling $30,000. If operating income for the company was $15,000 for the month, the traceable fixed costs in Division M must have been: $56,000 O $36,000 $15,000 $20,000 O $50,000

Cathy Company has two divisions, L and M. During July, Division L had sales of $80,000, a contribution margin ratio of 30%, and a segment margin of $10,000. The company as-a-whole had sales of $200,000, a contribution margin ratio of 40%, and a segment margin for the two divisions totaling $30,000. If operating income for the company was $15,000 for the month, the traceable fixed costs in Division M must have been: $56,000 O $36,000 $15,000 $20,000 O $50,000

Name: Cathy Company has two divisions, L and M. During July, Division L had
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Description: Cathy Company has two divisions, L and M. During July, Division L had sales of $80,000, acontribution margin ratio of 30%, and a segment margin of $10,000. The company as-a-whole hadsales of $200,000, a contribution margin ratio of 40%, and a segmen

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 1CE: Forchen, Inc., provided the following information for two of its divisions for last year: Required:...

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